Myths about HRAs: Part 4
Even though they're growing in popularity, many people still believe the myths surrounding health reimbursement arrangements. We've already debunked three myths about HRAs. So let's move on to myth number four - that HRAs won’t satisfy the Affordable Care Act's employer mandate.
This mandate requires applicable large employers to offer at least 95% of their full-time employees and their dependents health insurance that’s affordable and meets minimum value and minimum essential coverage.
Many employers assume traditional group health plans are the only form of health insurance that satisfies this mandate, but this isn’t the case. The individual coverage HRA (ICHRA) can fulfill the employer mandate requirements as long as the IRS considers your employees’ allowances affordable.
If your ICHRA is affordable and your employees have a qualified health plan with minimum value and MEC, your benefit will satisfy the employer mandate.
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